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Determine whether performance obligations are satisfied over a period of time (several performance obligations) or at a point in time (one performance obligation).

Revenue can be recognized when:

  1. The seller has a present right to payment for the asset;
  2. The customer has legal title to the asset;
  3. The customer holds physical possession of the goods;
  4. The customer holds significant risks and rewards of ownership; or
  5. The customer has accepted the asset.